insights EGalim law and PROMOTIONS: WHAT ARE SHOPPERS LOOKING FOR?
Head of Insights 21 february 2019
At the time when the implementation of the law on food involving SRP rises are set to have an impact on the price increase of certain loss leaders, both manufacturers and retailers will have to show proof of creativeness. In this way the agriculture and food law ("EGalim" in French) will change the situation for promotional campaigns, no longer allowing brands to offer discount prices only.
MOBEYE, in its capacity of POS implementation vision specialist, has conducted a survey of 950 consumers over two weekends (so that animation is included), firstly in order to be aware of consumer expectations and secondly to report on hypermarket promotions at POS.
1. BEFORE ENTERING THE STORE: WHAT SORT OF PROMOTIONS DO YOU HOPE FOR?
First of all, 94% say they are open to promotional sales and the most popular type of promotion is still immediate reductions.
"WHAT KINDS OF PROMOTION DO YOU MOST APPRECIATE?" (multiple choice)(For reasons of methodology consumers answered this question before entering the store).
2. ONCE IN THE STORE: WHAT ARE THE PROMOTIONS THAT ATTRACT YOUR ATTENTION?
Although the generosity of promotions and their signage appear to be significant criteria for shoppers’ "expectations", it is ultimately the size and wrapping that will make the difference "at the point of sale". The generosity of the promotion finally appears only as the third criterion of attractiveness. Therefore, beyond the mere promotional aspect of negotiations with the brand, placing the POS under the spotlight would seem to be a priority for the consumer.
"WHAT CRITERIA ATTRACT YOUR ATTENTION?" (multiple choice)(for in-store methodology reasons the consumer identified a FSDU and explained the reasons for their choice).
Careful: animation does not however seem to be or is no longer a decisive factor. Only 20% of the presented animations attracted consumers.
Note: FSDUs with carousels have all proven to be the most visible. Below are 2 examples at Candlemas (pancake day) with the brands Nutella and Tefal.
Auchan, St Jean de la Ruelle
Photo taken 25 January 2019
Carrefour, St Jean de Vedas
Photo taken 25 January 2019
My first recommendation involves implementation: maximum highlighting with a carousel as the focus to enable large volumes to be displayed at floor level and to ensure maximum promotional visibility.
My second recommendation involves the approach strategy in the context of EGalim law because lotteries have been given much publicity since 1 February 2019. Although, this type of promotional approach is apparently only the 5th most important consumer expectation, 77% would still be interested in participating in contests. Between winning "many small prizes" or "a few big prizes", they did not voice an opinion! 54% fall into the first group compared with 46% in the second. To offer you a few clues in spite of everything, I asked them the following open question:
"WHAT PRIZES WOULD YOU LIKE TO WIN?"
The E.Leclerc brand has launched a significant campaign enabling consumers to win purchase vouchers and gift cards on millions of their brand-name products.